Customers: Establishing the target market is the focus of the case. There are different avenues they can venture down. The key is to figure out which will be generate sales more quickly and prove to be the most beneficial to the company. Polyphonic options are to market to the record labels, producers, or the unsigned artists. Collaborators: Polyphonic first idea was to market their technology of the HAS to retailers. The retailers would have stations in their stores so that people can rate songs. The problem was that they could not find a software company to work with.
Competition: There are no other forms of technology that predict the successfulness of songs in the music industry. The current method used is producer’s gut feelings. Context: The music industry is rapidly changing. New hits and duds are released everyday. If record companies can better predict the successes of songs, they could save a lot Decision Area Polyphonic has several decisions to make before getting this project off the ground. The first decision that has to be made is who to target Hit Song Science toward.
Polyphonic can either target HAS toward record labels, producers, or to unsigned artists. After that decision is made, we need to come up with a suitable market plan. We need to figure out how HAS should be positioned, what price should be charged, and how Polyphonic should approach the selling process. Identification and Evaluation of Alternatives The alternatives the management team of, Barcelona-based, Polyphonic HIM were faced with were who was their best target market and what was a suitable marketing plan to best position their new technology, Hit Song Science (HAS).
Their alternatives are the following: . To pursue record labels by offering assistance in deciding on whether to market an album, in selecting which song to release first, and in testing new artists looking for a record deal . 2. To pursue producers by offering a chance to test songs or albums at some stage during the production process and “tweak” them to maximize heir hit potential. 3. To pursue unsigned artists by offering the ability to check the hit song potential of their songs and thus find out whether they had a shot at making it in the industry.
In the first option HAS would be positioned towards essentially saving record labels money. With the technology of HAS record labels would be able to evaluate an albums sales potential before actually spending the money to market the album. They would also be able to rank songs in an album for the purposes of releasing the best possible single. This would decrease emotional Judgments, thus allow record abeles to have bigger promotional budgets without the risks of failure. In addition, record labels would also have the ability to test an unsigned artists potential prior to offering them a record deal.
In the second option HAS would be focused on presenting itself as adding value and reducing pressure to create and oversee a successful album. HAS would increase hit song credibility which would reduce the pressures of presenting a hit song to a record label. The technology would also provide producers the ability to evaluate a song prior and/or during a recording session which would reduce recording time and money. In the third option HAS would be positioned to increase the likelihood of being signed by a record label. HAS would give artists the ability to evaluate their “demo” recording prior to submission to a record label.
Pros and Cons with pursuing record labels Failure risks associated with releasing a new album would be reduced ; Stress/ risks associated with the decision of selecting which song to release as a single would be reduced ; Assistance in the evaluation of marketing budgets for a single/album ; Ability to testing artists potential prior to record deals Cons Possible album hits could be easily overlooked arguing producers Increases credibility Ability to evaluate a song prior/during recording sessions Cons May hinder possible creative breakthroughs in the industry Pros and Cons with pursuing unsigned artists Secure hit potential in their “demo” recordings Cons Not financially supported by a record label Recommended Course of Action Based on information taken from Exhibits 6 and 8 from the case study, Hit Song Science should market its product and services to record labels attempting to catch a larger share of the market. The elitist attitude of executives at companies like
Universal (current market leader) would make this product extremely difficult to sell. These executives are experiencing much success in their industry and have a mindset of “if it anti broke, don’t fix it”, while also taking pride in their individual skill at recognizing hits and busts alike. Bottom dwellers in the industry will be more apt to try and retain more market share through unconventional methods. The great thing about this market is that the so-called bottom dwellers consist of Just about every company other than Universal. Universals North American market share is so nominate that MI, BMW, Sony, Warner, and the Independents are dwarfed in comparison.
This leaves large market for Hit Song Science’s services. Given Hit Song Science’s success with artists such as Nora Jones and Maroon 5, there is a strong pitch to give to company executives that appeal to more than Just their desperation to attain more of the industry market share. Hit Song Science has name recognition. Exhibit 8 shows how our technology correctly calculated which songs had “hit potential” and which would be busts. When taking the highest and lowest rated tracks on the album and comparing them to actual market performance, our ululations were dead on. Hit Song Science has created an unconventional source of competitive advantage.
This technology has the opportunity to revolutionize the industry by either reaffirming gut instincts of the top minds in the industry, or by giving those top minds the opportunity to rethink their feelings on an artists’ piece of Nor. In the long run, this could save a company millions in the production and promotion of songs that will never make it as hits. With technology like HAS they can eliminate some of the risk of releasing a song that is not a hit and will not make it to he Top 40. (See Table A) Product/Place iris type of technology is not the typical fare that one would find in a retail establishment. As providers for this product/service, we must be seen as consultants.
Our product will be available directly from us, the creative minds behind the technology. Price eased on fixed costs coming to $500,000 and variable costs being roughly $300 per song is appropriate. This price will allow for a reasonable breakable unit and dollar amount and still be priced way below other research methods that are currently used by record labels. Being that we are offering a relatively new and unknown product/service, we understand that it may be a stretch to assume that record companies will dish out large amounts of capital on technology that they know very little about. To help with this, we may suggest using either a free trial usage, or an introductory discounted price, only if necessary.
Promotion Our product is an investment, plain and simple. A record executive or recording artist will pay money for the slight chance that this gives them the edge when attempting to offer something new to the public and in doing so, bring in more refits. Being an investment, it should be promoted and delivered accordingly. It Not be the technology itself that’s promoted, however, the company which will be sold as leaders to the proverbial Promised Land for artists. The company should be promoted within the industry. There is really no market outside of it. Sales pitches should be conducted by technology salesperson with a vast knowledge of the inner Mornings of our product.
And finally, the company image should exude success. Many will see using technology as a confession of failure. We have to sell it as a commitment to success. Overall Evaluation An investment in the product that Hit Song Science has developed is a great idea. En feel the most critical objection to deal with would be that the music execs do not have any need for technological assistance for a gift they obviously already have. Logic tells us that nobody has always been right about a decision they’ve made in this business. There is room for improvement, and if it renders a competitive advantage, “why not try it out; especially if you can get a free trial use out of it.